Contract Hire Plus GAP Insurance

What is Contract Hire Plus GAP Insurance?

Contract Hire GAP Insurance will, in the event of a total loss claim (accident, theft, fire or flood damage), cover up to 100% of the outstanding rental payments for the vehicle and cover any shortfall in the market value settlement provided by the insurer.

For an additional premium you can now also protect the initial rental/deposit you paid at the start of your agreement – this is usually equivalent to 3, 6 or 9 of your subsequent monthly rental payments. This means that if your vehicle is declared a total loss, as well as clearing your outstanding payments with the finance company you receive an additional settlement for the upfront payment.

There are three levels of cover to choose from: £1,000, £2,000 or £3,000. The amount you select should be enough to cover the full amount you paid as an initial rental.

Vehicles used in any sort of competitions or rallies. Vehicles used for racing, pace making, speed testing or in reliability trials; Vehicles not listed in Glass's Guide; kit cars; invalid carriages; commercial Vehicles of more than 3500kg gross weight. Any, taxi, mini cab, driving tuition vehicle, courier or delivery vehicle of any type or any private or public rental vehicle.

Contract Hire Plus GAP Insurance Features:

Available up to 5 years for vehicles on lease or contract hire

We are fully authorised and regulated by the Financial Conduct Authority (FCA) and your policy is covered by the Financial Services Compensation Scheme

Pays as standard up to £250 of your Comprehensive Insurance excess

Our policies do not have a ‘Market Value Clause’

Our policies do not a have a ‘Glass Guide maximum retail value clause’

Any amendment made FREE of charge

If you select Initial Rental Cover the policy will also ensure you recover your initial rental payment, up to a maximum of £3,000

This depends on the supplier but you really need to double check the small print. Our Contract Hire Plus GAP specifically covers up to 100% of outstanding rentals and any potential shortfall in residual value.

Based on average figures you could assume that a 2-year-old vehicle would be worth about 65% of its original value, a 3-year-old vehicle 45% - 50% and for 4 years you could assume 35%-45%.

When getting a quote our system suggests a "GAP Claim Limit" on this basis.

If the vehicle is on a lease or contract hire agreement, it is worth checking with the leasing company their policy on charges if the contract is terminated due to a total loss. Many leasing companies charge 50%-60% of outstanding rentals whilst some will charge you 100% of outstanding rentals.

With Initial Rental Cover we offer a choice of claim limit - either £1,000, £2,000 or £3,000 – and we would suggest taking the one which would cover your full deposit.

In this scenario we would suggest a £2,000 claim limit to be the most suitable. This means that, in the event of a total loss, you would receive back the full £1,700 initial rental paid at the start of the agreement.